Krafton signs deal with Hanwha to pursue 'physical AI' in defense

PUBG maker Krafton is moving into the defense sector after signing an investment deal with Hanwha Aerospace to "develop and commercialize technology across various sectors, including defense," with a particular focus on "physical AI." The company formalized its aim to be an "AI-first company" in 2025 and committed $70 million to a GPU cluster intended to accelerate agentic AI.

Agentic AI operates with some degree of autonomy: you tell it what to do, and it goes and does it. Krafton CAIO Kangwook Lee, who is also CTO of Ludo Robotics, posted a distinctive image on X linked to the announcement. CEO Kim Chang-han said he expects the partnership to create "a global defense technology company like Anduril" and expressed concerns about the decline of the American empire.

krafton, hanwha aerospace, physical ai, agentic ai, gpu cluster, ludo robotics, kim chang-han, kangwook lee, defense sector, anduril